Which of the Following Would Occur If Labor Productivity in the UK

question 21

Multiple Choice

Which of the following would occur if labor productivity in the UK increased relative to that in the US,and before this increase the dollar was in an exchange rate equilibrium with the sterling?

• A)The United States will now demand fewer imports
• B)The United States will now demand more pounds
• C)The UK will supply more pounds to the US.
• D)The UK will supply more pounds to the US

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